The latest mantra is Universal Banking, which is combination of Commercial & Investment Banking. The concept is most relevant in the United Kingdom and the United States, Barclays Bank, Chase Manhattan and Citicorp are some of the examples of it. Where historically there was a distinction drawn between pure investment banks and commercial banks. In the US, this was a result of the Glass-Steagall Act of 1933. In both countries, however, the regulatory barrier to the combination of investment banks and commercial banks has largely been removed, and a number of universal banks have emerged in both jurisdictions. However, at least up until the global financial crisis of 2008, there remained a number of large, pure investment banks. In other countries, the concept is less relevant as there is not regulatory distinction between investment banks and commercial banks. Thus, banks of a very large size tend to operate as universal banks, while smaller firms specialised as commercial banks or as investment banks. This is especially true of countries with a European Continental banking tradition. Notable examples of such universal banks include Deutsche Bank of Germany, and UBS and Credit Suisse of Switzerland. Universal banking is the solution to FIs problems. A universal bank participates in many kinds of banking activities and is both a Commercial bank and an Investment bank. The merger of ICICI and ICICI bank is probably the largest merger seen in corporate India Industry, which has redefine banking in the highly competitive era of globalization and liberalization. Post merger, the new entity- ICICI Bank is the first Universal Bank in India and the second largest commercial bank in the country after SBI. Financial Institutions & Insurance Companies are now merging ahead to capture new business areas and leading towards Universal Banking. The banking sector deregulation that took place in India during the early 1990s posed a threat to the survival of Development Financial Institutions (DFIs). They were cut off from the concessional funding extended by the government and were exposed to intense competition from local and foreign banks. Over a period of time, Industrial Credit and Investment Corporation of India Ltd. (ICICI), which was set up as a DFI in 1955, underwent significant changes to meet these challenges. To exploit the synergies brought by universal banking, it went in for mergers and acquisitions and finally reverse merged with its subsidiary ICICI Bank. The mid-eighties marked the beginning of the shift to a buyers` market in the banking space, and Bank of Baroda, was among the first to grasp this pressing imperative. The bank orchestrated its business strategies around the centrality of the customer. It diversified rapidly into the areas of merchant banking, housing finance, credit cards and mutual funds. The strategy also entailed the sustained development of a string of segment - specific branches entrenching operations in profitable markets, the world over. The drive was to revamp overseas operations and intensify structural changes across...

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...ICICI – A Universal Bank
Presented By
Under the guidance of Prof. Hemal
Submission Date : 21/02/2010
ACKNOWLEDGEMENT
We are greatly indeed to our honorable Prof. Hemal for all her encouragement support and facilities strength in getting this project to its present stage.
Developing any project is not an easy job. It needs lots of human efforts, dedication and togetherness among the people involved in it. These things mean a lot only when there is strong driving force and continuous support behind the team in every stage of development. This driving force and support in our case was by our own project guide: Prof. Hemal.
We would like to thank our parents for providing us with all their support and encouragement’s right from the projects budding stage to its current maturity. Above all we would like to thank the almighty for giving us courage.
Index
Introduction
UniversalBanking is a multi-purpose and multi-functional financial supermarket (a company offering a wide range of financial services e.g. stock, insurance and real-estate brokerage) providing both banking and financial services through a single window.
Definition of UniversalBanking:
As per the World Bank, "In UniversalBanking, large banks operate extensive network of branches, provide many different services, hold several claims on firms (including equity and debt) and...

...market. There is no official category in investment banking.
2
Merchant bankers assist corporate in raising capital. They assist in issue of Shares, syndicating loans, public issue of debentures. They do not provide funds. They only assist. They also actively arrange working capital, appraisal Projects scrutinize & persuade merger proposals.
In BRITAIN merchant bankers & investment bankers are synonymous. In the U.S., Merchant bank means as investment bank which is well-equipped to handle multinational corporations.
In INDIA merchant bankers is a body corporate who carries on any activity of the issue management, which consist of preparing prospectus & other information relating to the issue. Merchant banks in India are not allowed to conduct any business other than that related to securities market. There is no official category in investment banking
DEFINITION:
In banking, a merchant bank is a financial institution primarily engaged in offering financial services and advice to corporations and wealthy individuals on how to use their money. The term can also be used to describe the private equity activities of banking.
According to Cox D. merchant banking is defined as, “merchant banks are the financial institutions providing specialist services which generally include the acceptance of bills of exchange, corporate finance, portfolio...

...UNIVERSALBANKING
What is UniversalBanking?
“Banking that includes not only services related to savings and loans but also investments.” This is most common in European countries as it is prohibited by law in the United States. Although, in recent times there has been much market pressure in the US for change.
In universalbanking, large banks operate extensive networks of branches, provide many different services, hold several claims on firms (including equity and debt), and participate directly in the corporate governance of firms that rely on the banks for funding or as insurance underwriters.
In our discussion about UniversalBanking, we would address the following questions;
• Would universalbanking be effective in a newly industrializing economy?
• Does universalbanking reduce corporate financing costs for a newly industrializing economy?
• What does it mean to India? Is it a viable option for the ‘Oh so tempestuous’ Indian Economy?
UniversalBanking and the Financing of Industrial Development
In a Paper submitted to the World Bank, Calomiris contrasts the cost of financing industrialization in the United States and in Germany during the second industrial revolution. Between 1870 and 1913, large production and distribution activities...

...UniversalBanking
BY :
1. SUSHANT NAIDU - 31
2. SHEETAL NAIR - 32
3. KARTIK NAIR - 33
4. VISHAKHA PARMAR - 34
5. PAULIN MARY - 35
6. RAHUL RAJGOPALAN - 36
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UNIVERSALBANKINGUniversal banks are generally large banks with extensive network of branches that provide many different financial services and are principally engaged in commercial banking, investment banking, securities and even insurance. They invest in the equity and debt of the corporates and many even participate directly in the corporate governance of the firms that rely on the banks as sources of funding or securities underwriters.
Universal banks with some variations in structures, have been functioning in the United States, Europe, and Japan. India can also boast of joining the bandwagon as SBI, ICICI Bank and IDBI may now be termed as universal banks.
Financial economists observe that universal banks have evolved over a period of time and seemingly different functions like commercial...

...﻿A universal bank participates in many kinds of banking activities and is both a commercial bank and an investment bank as well as providing other financial services such as insurance.[1] These are also called full-service financial firms, although there can also be full-service investment banks which provide asset management, trading, and underwriting.
The concept is most relevant in the United Kingdom and the United States, where historically there was a distinction drawn between pure investment banks and commercial banks. In the US, this was a result of the Glass–Steagall Act of 1933. In both countries, however, the regulatory barrier to the combination of investment banks and commercial banks has largely been removed, and a number of universal banks have emerged in both jurisdictions. However, at least until the global financial crisis of 2008, there remained a number of large, pure investment banks.
In other countries, the concept is less relevant as there is not regulatory distinction between investment banks and commercial banks. Thus, banks of a very large size tend to operate as universal banks, while smaller firms specialised as commercial banks or as investment banks. This is especially true of countries with a European Continental banking tradition. Notable examples of such universal banks include BNP Paribas and Société Générale of France; HSBC, Standard Chartered Bank and...

...Advantages of UniversalBanking
• Economies of Scale. The main advantage of UniversalBanking is that it results in greater economic efficiency in the form of lower cost, higher output and better products. Many Committees and reports by Reserve Bank of India are in favour of Universalbanking as it enables banks to exploit economies of scale and scope.
• Profitable Diversions. By diversifying the activities, the bank can use its existing expertise in one type of financial service in providing other types. So, it entails less cost in performing all the functions by one entity instead of separate bodies.
• Resource Utilization. A bank possesses the information on the risk characteristics of the clients, which can be used to pursue other activities with the same clients. A data collection about the market trends, risk and returns associated with portfolios of Mutual Funds, diversifiable and non diversifiable risk analysis, etc, is useful for other clients and information seekers. Automatically, a bank will get the benefit of being involved in the researching
• Easy Marketing on the Foundation of a Brand Name. A bank’s existing branches can act as shops of selling for selling financial products like Insurance, Mutual Funds without spending much efforts on marketing, as the branch will act here as a parent company or source. In this way, a bank can reach the client even in...

...THE COLLAPSE OF UNIVERSALBANKING SYSTEM IN NIGERIA:
AN ASSESSMENT OF THE INTRODUCTION OF SPECIALZED BANKING AND HOLDING COMPANY SYSTEM.
BY
AIMINHIEFE OSAGIE BENEDICT
Osazemogie@yahoo.co.uk, 08055819143
BEING AN M.Sc. (ACCOUNTING AND FINANCE)
SEMINAR PAPER,
DEPARTMENT OF ACCOUNTING,
FACULTY OF MANAGEMENT SCIENCES,
BENUE STATE UNIVERSITY, MAKURDI.
Abstract
The Central Bank of Nigeria (CBN) recently reviewed the universalbanking system in favour of separate banking licenses under the Banks and Other Financial Institutions Act (BOFIA). The proposed changes are as a result of 2009′s audit of Nigeria’s entire banking sector that found a number of banks in a “grave situation” with a high percentage of non-performing loans in their books, poor risk management, and weak corporate governance structures in place. According to the Central Bank of Nigeria, banks in Nigeria currently carry out a wide range of banking and non-banking services, which include insurance, investment advisory, asset management services, etc, by virtue of the universalbanking license regime. The regime, however, has exposed the banking business to greater risks that challenges the stability of the financial system. The new Regulations require banks to divest from all non-banking businesses and obtain...

...
BANKING BUSINESS
A bank is a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly by loaning or indirectly through capital markets. A bank links customers that have capital deficits and customers with capital surpluses.
Due to their importance in the financial system and influence on national economies, banks are highly regulated in most countries
Banks act as payment agents by conducting checking or current accounts for customers, paying HYPERLINK "http://en.wikipedia.org/wiki/Cheque" \o "Cheque" cheques drawn by customers on the bank, and collecting cheques deposited to customers' current accounts. Banks also enable customer payments via other payment methods such as Automated Clearing House (ACH), Wire transfers or telegraphic transfer, EFTPOS, and automated teller machine (ATM).
Banks borrow money by accepting funds deposited on current accounts, by accepting term deposits, and by issuing debt securities such as banknotes and bonds. Banks lend money by making advances to customers on current accounts, by making installment loans, and by investing in marketable debt securities and other forms of money lending.
Banks provide different payment services such as cards, collection services, cash management services, foreign exchange.. Banking business also includes money broker, consulting (finance, M&amp;A), safe keeping, buying – selling money…
WHAT ARE SERVICES?
Services...